Microsoft Tells Engineers ‘Tokenmaxxing Is Not What We Are Optimizing For’

404 Media · 2 months ago · 5 ● 4 sources

Microsoft has introduced spending limits on AI tools for employees and designated GPT-5.6 as the default model, directing engineers to focus on productivity gains rather than maximizing AI usage. Starting July 2026, Microsoft divisions will have AI token budgets, with current employee spending ranging from hundreds to thousands of dollars monthly. The policy reflects a broader industry trend of controlling AI costs as companies recognize that higher token consumption does not always deliver proportional business value.